Feds Launch ARS Probe Of 2 Credit Suisse Brokers

Law360, New York (July 9, 2008, 12:00 AM EDT) -- Federal prosecutors are reportedly investigating whether two former Credit Suisse Group brokers lied to investors about the nature of the auction rate securities they bought.

The probe is being carried out by the U.S. Attorney's Office for the Eastern District of New York, the Wall Street Journal reported Wednesday, citing unnamed sources familiar with the matter.

If charges are brought against the two brokers, Eric Butler and Julian Tzolov, then it would be the first criminal case to involve auction rate securities. Dozens of private civil...
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